To assist COVID-19 patients and bolster the health of India, the Reserve Bank of India (RBI) Wednesday announced a COVID loan book scheme.
The COVID loan book will incentivize banks to assist emergency funding for hospitals, vaccine manufacturers, medical equipment importers and even patients.
RBI announced this special liquidity facility to enable banks to step up lending to the healthcare sector and patients.
This special liquidity facility is to the tune of Rs 50,000 crore. The window to borrow under this facility will remain open till March 31, 2022.
RBI Governor, Shaktikanta Das said, “The fight against the second wave, alleviating any constent for financing sight for all stakeholders that is government, hospitals and dispensary, pharmacy, vaccine, medicine manufacturers and importers, medical oxygen manufacturers and supply, private operators in critical helpline in supply chain and above all the common man who may be facing curtain spikes in health expenditure. All these require a comprehensive targeted policy response.”
He further added, ” The first majors relate to term liquidity facility of Rs 50,000 crore, which is access to who needs emergency health services. The most provision for immediate liquidity for ramping up COVID-related healthcare, infrastructure and services in the country and on tap liquidity of Rs 50,000 crores with tenner of up to 3 years at the repo rate has been opened till March 31st 2022 that is March 31st of next year. Under the scheme, banks can provide fresh lending support to a wide-ranging of the entity including vaccine manufacturers, importers and suppliers of vaccine and priority medical devices hospitals and Dispensaries pathology, labs manufacturers and suppliers of oxygen and ventilators importers of vaccine and COVID related drugs logistics funds and also patients for treatment. Banks have been Incentivised for quick delivery under the scheme through the extension of priority sector classification to curtain lending and facility will be available up to 31st March next year.